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Yellen's testimony: key points

Here are the key points of Janet Yellen's testimony:

  • QE made a meaningfull contribution to economic recovery
  • Benefits of QE still exceed the costs
  • It is important not to remove support too soon
  • Fed has the tools to wind down QE purchases
  • Fed must do what they can to promote a strong recovery
  • Yellen can't give an exact date of QE tapering: THERE IS NO SET TIMELINE
  • QE progress is data dependant, at each meeting Fed is trying to assess growth
  • It is important for the Fed to monitir the risks from asset purchases
  • Yellen doesn't see any risks to the financial stability at this point

Yellen's comments did't really impress the markets. Actually, she added nothing really important to the text published yesterday. EUR/USD has recovered some ground after the yesterday's dip to $1.3420, but holds below $1.3500. GBP/USD rose to $1.6100, while AUD/USD - to $0.9335. USD/JPY holds a little bit below the 100 yen hurdle.

Janet yellen

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